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You are conflating macro- and micro- economics a bit in that statement. Entities accumulating wealth incrementing towards infinity contributes to inflation, e.g. My family can spend 1 trillion to out-bid my competitor for ownership of a villa worth 1 billion for bragging rights.

Commodity pricing may contribute to inflation over time. But commodity prices go down, whereas currency tends to move in one direction until the civilization backing it collapses, or the specie changes.



I'm more talking about how hoarded money has no effect until its spent, at which point the consumption tax kicks in. I.e. it's not really a regressive tax because you are taxed based on how you live, not how you can live.


It would not be called "The Paradox of Saving" if that statement was true! =)


You're assuming all economic activity is good activity. Billionaire spend allocates capital to frivolous garbage that does not improve human experience.




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